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By Rebecca Clancy | Published May 10, 2012

BoE votes against more QE

The Bank of England has voted to keep the UK’s asset purchasing programme at £325bn, with rates remaining at 0.5 per cent.

The central bank’s rate-setting Monetary Policy Committee had been expected to hold off increasing quantitative easing (QE).

The decision to hold the asset purchasing programme at £325bn comes after it was revealed last month that the UK had officially slipped into a technical recession - two consecutive quarters of negative growth.

Minutes from the MPC’s meeting held last month revealed that David Miles voted to increase the size of the asset purchasing programme by a further £25bn to take the package to £350bn.

The one dovish member had previously been joined by Adam Posen in voting for an increase in quantitative easing in March, however, last month Mr Posen voted to hold the programme at its current level of £325bn.

The last extension to the programme occurred in February, with an unanimous vote from the nine-member committee for a £50bn expansion that would last three months, finishing in April.

It will not be clear who, if anyone, voted for further monetary stimulus this month until the minutes are released on May 23.

Meanwhile, the MPC voted to hold rates at the record low of 0.5 per cent where they have been since March 2009.

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